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i il i d Convenience Retail Asia Lt d 2011 Annual Results Announcement 2011 Annual Results Announcement 7 March 2012 7 March 2012
i il i dConvenience Retail Asia Ltd2011 Annual Results Announcement2011 Annual Results Announcement
7 March 20127 March 2012
Agenda
Overall Hong Kong & China Retail Markets
2011 Financial Results Highlight2011 Financial Results Highlight
2012 Update & Outlook
Questions & Answers
2
Hong Kong & China Retail Markets
3
Hong Kong Retail Market
35
40
Total Retail Sales Value
9
10
Composite Consumer Price Index
2011FY: +24.8% 2011FY: +5.3%
28.1 26.2
27.8 27.8 28.8 29.1 29.0
24.0 23 0 23.4 23.4 25
30
35
hang
e
5 6
7.9
5 7 5.8 5.8 5 7 5 7 6
7
8
hang
e
23.0
15
20
ar-o
n-ye
ar %
ch
3.4 3.6
4.4 4.6 5.2
5.6 5.7 5.7 5.7
4
5
6
ear-o
n-ye
ar %
ch
8.5
5
10
Ye
1
2
3 Ye0
01/20
11
02/20
11
03/20
11
04/20
11
05/20
11
06/20
11
07/20
11
08/20
11
09/20
11
10/20
11
11/20
11
12/20
11
0
01/20
11
02/20
11
03/20
11
04/20
11
05/20
11
06/20
11
07/20
11
08/20
11
09/20
11
10/20
11
11/20
11
12/20
11
Source: Census and Statistics Department, HKSAR
2009: +0.6%; 2010: +18.3%2009: +0.6%; 2010: +18.3% 2009: +0.5%; 2010: +2.4%2009: +0.5%; 2010: +2.4%
4
Hong Kong Market ‐ 2011 Key Highlight
V i i il l d i b i d l lVery strong increase in retail sales driven by improved local consumer sentiment, inflation and increase in visitors spendingp g
Gradual slowdown in the growth starting in 4th quarter
A year of inflation with increase in food and raw materialA year of inflation with increase in food and raw material costs, labour, rental and utilities
Cigarette and newspaper volume unfavourably affected byCigarette and newspaper volume unfavourably affected by increase in tobacco duty and fierce newspaper war
Food costs increased more than price increase due to keen pcompetition
5
China Retail Market
25
Total Retail Sales Value
6 5 7
8
Consumer Price Index
2011FY: +17.1% 2011FY: +5.4%
19.9
17.4 17.1 16.9 17.7 17.2 17.0 17.7 17.2 17.3
18.1
15
20
hang
e
4.9 4.9 5.4 5.3 5.5
6.4 6.5 6.2 6.1
5.5
5
6
7
hang
e
11.6
10
15
ar-o
n-ye
ar %
ch 4.2 4.1
3
4
ear-o
n-ye
ar %
ch
5
Ye
1
2
Ye0
01/20
11
02/20
11
03/20
11
04/20
11
05/20
11
06/20
11
07/20
11
08/20
11
09/20
11
10/20
11
11/20
11
12/20
11
0
01/20
11
02/20
11
03/20
11
04/20
11
05/20
11
06/20
11
07/20
11
08/20
11
09/20
11
10/20
11
11/20
11
12/20
11
Source: National Bureau of Statistics of China
2009: +15.5%; 2010: +18.4%2009: +15.5%; 2010: +18.4% 2009: ‐0.7%; 2010: +3.3%2009: ‐0.7%; 2010: +3.3%
6
Southern China Market – 2011 Key Highlight
Started the year with very strong growth but slowdown in consumer spending after October 2011 Golden Holiday
Food price stabilized and inflation dropped from a peak of 6.5% in July to 4.1% in December
Prices of raw materials, food and grocery have not dropped
Our sales increases were result of strong Hot & In food services, upgrade of store models and creative promotions.
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2011 Financial Results Highlight
8
2011 Financial Results HighlightNumber of StoresNumber of Stores
E d f E d fEnd of 2010 Opened Closed End of
2011
Circle K Hong Kong 318 21 (15) 324Circle K Hong Kong 318 21 (15) 324
Circle K Southern China 63 10 (7) 66Guangzhou (owned) 56 10 (7) 59Guangzhou (owned) 56 10 (7) 59Guangzhou (franchised) 6 0 0 6Shenzhen 1 0 0 1
Circle K Macau (franchised) 21 2 (1) 22
Circle K Zhuhai (franchised) 12 1 0 13Circle K Zhuhai (franchised) 12 1 0 13
Saint Honore Group 112 14 (8) 118
CRA Gro p Total 526 48 (31) 543CRA Group Total 526 48 (31) 543
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2011 Financial Results HighlightGroup TurnoverGroup Turnover
2nd Half Full Year5,000
2nd Half
+ 8.5%
5,000
Full Year
3 972 6*
+ 11.1%
3,349.3 3,575.2
3,000
4,000
Million 3,349.3
756.2 885.0
3,000
4,000
Million
3,575.2*3,972.6*
415.7 481.5 2,000
HK$
1,921.8* 2,085.9*
2 881 9 3,155.5
2,000
HK$
1,540.5 1,638.9
0
1,000 2,881.9
0
1,000
0
2009FY 2010FY 2H2010 2H2011
Circle K Saint Honore
0
2009FY 2010FY 2011FY
Circle K Saint Honore
* Less inter‐group sales: HK$34.4M in 2H 2010 and HK$34.5M in 2H 2011
* Less inter‐group sales: HK$34.4M in 2H 2010 and HK$34.5M in 2H 2011
* Less inter‐group sales: HK$62.9M in 2010 and HK$67.9M in 2011
* Less inter‐group sales: HK$62.9M in 2010 and HK$67.9M in 2011
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Hong Kong MarketNew Products & PromotionsNew Products & Promotions
11
Hong Kong MarketNew Products & PromotionsNew Products & Promotions
12
Hong Kong Market ‐ New Store Design
13
Southern China MarketNew Products & PromotionsNew Products & Promotions
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2011 Financial Results HighlightGross Profit & Other IncomeGross Profit & Other Income
38 2nd Half
+ 0.3%38
Full Year
+ 0.4%
36.9 36.9 37 over 36.9 36.9 37 over
36.5 36.6
% of Turn
36.5
% of Turn
36 36
35
2009FY 2010FY 2H2010 2H2011
35
2009FY 2010FY 2011FY
15
2011 Financial Results HighlightGroup Store Operating ExpensesGroup Store Operating Expenses
30
2nd Half
+ 0.4%30
Full Year
‐ 0.2%
26.9
25 9 25 7
28
over
+ 0.4%
26.9
25 9 25 7
28
over
25.925.3
25.7
24
26
% of Turno
25.9 25.7
24
26
% of Turno
22 22
20
2009FY 2010FY 2H2010 2H2011
20
2009FY 2010FY 2011FY
16
2011 Financial Results HighlightGroup Net ProfitGroup Net Profit
200
2nd Half
200
Full Year
+ 22.0%
16.5
160
on
136.4
+ 12.2% 166.3
16 5
160
on
136.4
90.4
16.5
78.7 88.3
80
120
HK$ Millio
90.4
16.5
80
120
HK$ Millio
119.9
40119.9
40
0
2009FY 2010FY 2H2010 2H2011
0
2009FY 2010FY 2011FY
Gain on Property Disposal17
2011 Financial Results HighlightNet Profit BreakdownNet Profit Breakdown
Breakdown by MarketBreakdown by Market(HK$ Million) 2nd Half Full Year
2010 2011 2010 2011
Hong Kong & Macau Markets 88.0 95.7 158.9 184.3
China Market (9.3) (7.4) (22.5) (18.0)
CRA Group Total 78.7 88.3 136.4 166.3
Breakdown by BusinessBreakdown by Business(HK$ Million) 2nd Half Full Year
2010 2011 2010 2011
Convenience Store 54.3 64.4 88.8 130.7
Cake & Bakery 25.9 23.9 31.1 35.6
G i Di l f P t (1 5) 16 5
18
Gain on Disposal of Property (1.5) ‐ 16.5 ‐
CRA Group Total 78.7 88.3 136.4 166.3
2011 Financial Results HighlightNet Profit as % of TurnoverNet Profit as % of Turnover
62nd Half
+ 0.1%6
Full Year
+ 0.4%
3.84.1 4.2
4
5
over 3.8
4.24
5
over
2.73
% of Turn
2.73
% of Turno
1
2
1
2
0
2009FY 2010FY 2H2010 2H2011
0
2009FY 2010FY 2011FY
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2011 Financial Results HighlightBasic Earnings Per ShareBasic Earnings Per Share
30
2nd Half
+ 11.8%30
Full Year
+ 21.5%
18.6720
25
s 18.67
22.69
20
25
s
12.3910.76
12.0315
HK Cents
12.3915
HK Cents
5
10
5
10
0
2009FY 2010FY 2H2010 2H2011
0
2009FY 2010FY 2011FY
20
2011 Financial Results Highlight – 2nd Half
2H2010 2H2011 Change
Number of Stores 526 543 +17 storesNumber of Stores 526 543 +17 stores
Group Turnover (HK$M) 1,921.8 2,085.9 +8.5%
Group Net Profit (HK$M) 78.7 88.3 +12.2%
Net Profit as % of Turnover 4.1% 4.2% +0.1%
Basic Earnings Per Share (HK cents) 10 76 12 03 +11 8%Basic Earnings Per Share (HK cents) 10.76 12.03 +11.8%
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2011 Financial Results Highlight – Full Year
2010FY 2011FY Change2010FY 2011FY Change
Number of Stores 526 543 +17 stores
Group Turnover (HK$M) 3,575.2 3,972.6 +11.1%
Group Net Profit (HK$M) 136.4 166.3 +22.0%
Net Profit as % of Turnover 3.8% 4.2% +0.4%
Basic Earnings Per Share (HK cents) 18 67 22 69 +21 5%Basic Earnings Per Share (HK cents) 18.67 22.69 +21.5%
Dividends (HK cents)Interim Dividend (HK cents)
12.81.9
14.83.8
+15.6%+100.0%( )
Special Dividend (HK cents)Final Dividend (HK cents)
2.48.5
Nil11.0
N/A+29.4%
* Record-Breaking Year *22
Financial Results Highlight
Group Turnover Group Net Profit
4,000
4,500 Group Turnover
Saint HonoreCircle K 3,575
3,973166.3
160
180 Group Net Profit
2 231 2 500
3,000
3,500
ion)
3,349
88 9 90 4
136.4
100
120
140
ion)
2,917
3,323
1,297 1,384 1,516
1,737 1,995
2,231
1,500
2,000
2,500
(HK$
Milli
54.7 60.4 60.5 66.3 73.6 75.1
86.9 88.9 90.4
60
80
100
(HK$
Milli
500
1,000
0
20
40
-
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Year: 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
No. of store: 146 166 193 225 270 312 469 500 493 526 54323
Other Highlights
The 2nd Hong Kong Outstanding Corporate Citizenship Award
‐ Service Industry Category ‐jointly by Hong Kong Productivity Council &
Transfer of listing to the Main Board ‐ 20 June 2011
jointly by Hong Kong Productivity Council & Committee on the Promotion of Civic Education
Manpower Developer 1stby Employees Retaining Board
2010/2012
Family‐Friendly Employersby Family Council
2011
Caring Company Logoby HKCSS
‐ Circle K since 2003‐ Saint Honore 2009‐2011
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Other Highlights
Best LicensedBest Marketing Best Licensed Premium Promotion by HKTDC ‐ 2011
Fashion & Homeby Disney ‐ 2011
20112011 Service Retailer Service Retailer –– CVS CVS CategoryCategory2011 S i &2011 S i &2011 Service & 2011 Service & Courtesy AwardCourtesy Award–– Supervisory LevelSupervisory Level(Supermarkets /(Supermarkets /(Supermarkets /(Supermarkets /CVS Category)CVS Category)
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Other Highlights
型•買•行 選最紅
By East Touch Magazine 2011
TVB周刊最強人氣品牌大獎
TVB Weekly Superbrand2011
型•買•行 選最紅人氣十大型品潮選
Top Chic Products PollBy The MTR Corporation
20112011 2011
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2012 Update & Outlook
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2012 Update & Outlook
Expecting a tough 1st half 2012:Expecting a tough 1st half 2012:China and Hong Kong consumers’ sentiment to spend not as strong as 2011European sovereign debt and soft U.S. economyMilder inflation
f b ll l b d l llCost of business especially labour cost and rental still very high
S d d i i H K d ChiStrong new products and promotions in Hong Kong and Chinastores, strengthening of supply chains and upgrade of stores
Launch of Saint Honore store network in Shenzhen market
Confident of a better 2nd half 2012
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Winning Strategies for 2012
s &
Irrelevant GreatY
usiness
Mod
els Irrelevant
InnovationGreat Future
Yes
nven
t BStore M
Business Won’t Declining No
Rein S Won t
Survive ResultsNo
Continuous Improvement In Effectiveness &
YesNo
Continuous Improvement In Effectiveness &Management of Operating Expenses
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Th k Y !Thank You!
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